Id go with a hetzner storage box.

Its not a Server, but i imagine exaxtly what you are looking for

I'd never heard of VPSs prohibiting any specific use case; I have 3 restic repos on my VPS and have had them for close to 6 years now (well, borg until early this year, now restic, but it's the same principle).

I've looked through all the server types in https://www.hetzner.com/legal/system-policies (my VPS provider) and I can't find anything about not using for data backup.

(They only prohibit: crypto mining, IP address scanning, changing the MAC address, and using fake source IPs.)

Whoever told you all VPS places prohibit using their servers as a data saving/backup device is an idiot and should be ignored.

Where are you reading such things?

You can do what ever you want, as long as you stay in the limits (e.g. bandwidth) of your service and are not uploading any illegal content.

And of course: If you are privacy focused, always encrypt your backups.

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best one nice